700+ Banks Are Bordering on Insolvency

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And this is according to an FDIC report.

The names of the banks on the list are never made available to the general public by regulators out of fear that depositors at those institutions may prompt a so-called “run on the bank.”

…Bair confirmed that the pace of bank failures would pick up this year, which would likely put a further strain on the agency’s deposit insurance fund.

This fund, which covers customer deposits when a bank fails, slipped into red last fall for the first time since 1991. The fund’s deficit continued to balloon in the fourth quarter to nearly $21 billion – its largest deficit on record.

What is FDIC Chairman Sheila Bair’s spin?

“Usually a lack of profits is not considered a good result, but compared to the record loss the industry reported a year ago it represents a significant improvement,” she said during a press conference Tuesday.

Link courtesy of Steve Vance.

10:40 pm on February 23, 2010